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Personal Injury settlement

Newbie

Views 139

Replies 1

I just settled with a large company, for an injury that required surgery due to their negligence, and received a lump sum payment.  The time between the injury and settlement was 5 years.  Is this personal injury compensation taxable?

1 ACCEPTED SOLUTION

Accepted Solutions

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ATO Certified Response

ATO Community Support

Replies 0

Hi @DaisyChain

 

If you've made a personal injury claim and you agree to a settlement, or a court order is made in your favour, it will be tax-free, provided certain conditions are met.

 

You can find details on specific circumstances on our website for Structured settlements – examples.

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @DaisyChain

 

If you've made a personal injury claim and you agree to a settlement, or a court order is made in your favour, it will be tax-free, provided certain conditions are met.

 

You can find details on specific circumstances on our website for Structured settlements – examples.